EUR / USD
Recently, the foreign exchange market faces a difficulty to focus on one news and work it out. There are too many different political, geopolitical and economic topics that attract attention to themselves, but they cannot be the course-forming for any couple. This is the EU's dissatisfaction with Italy's high state debt, and a decline in the US stock market, and a trade war with China, which can greatly affect the US stock market in a bad way. The latest news concerns the statements of the PRC saying that "you should not underestimate the ability of China to protect its interests and rights." It is easy to guess who this message was addressed to. Thus, we can talk about the continuation of the escalation of the trade conflict. Yesterday's trading in the EUR / USD pair ended in another 30 basis points, which is fully consistent with the current wave marking. Despite the fall in the stock market, the US dollar continues its interest in which the foreign exchange market serves as the most attractive tool.
Sales targets:
1.1097 - 161.8% Fibonacci
1.1045 - 200.0% Fibonacci
Purchase goals:
1.1324 - 0.0% Fibonacci
General conclusions and trading recommendations:
The euro / dollar pair remains in the stage of building a downward trend. The signal from MACD was formed down, so I recommend to continue selling the euro with the targets of 1.1097 and 1.1045, which corresponds to 161.8% and 200.0% in Fibonacci. I recommend placing a restrictive order above the Fibonacci level of 76.4%. An unsuccessful attempt to break through any of the target levels will indicate that the pair is ready to move away from the lows reached.
GBP / USD
On May 29, the GBP / USD pair lost another 30 basis points. Thus, the estimated wave 3, in s continues to be built with targets located near the levels of 200.0% and 261.8% Fibonacci. The news background from the UK remains completely negative for the pound. That is why bears continue to dominate the market. The latest news from the UK reflects preparations for the election of a new prime minister, as well as a complete lack of understanding of what policy the new government will adhere to, especially if the parliament is re-elected. Both Theresa May, Jeremy Corbin and Boris Johnson already spoke about parliamentary re-elections. However, all this is only talk. There is no official information, and the markets react to zero promotion of all these vital issues by selling pounds sterling.
Sales targets:
1.2554 - 200.0% Fibonacci
1.2360 - 261.8% Fibonacci
Purchase goals:
1.3175 - 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern of the pound / dollar instrument implies a continuation of the instrument decline within the framework of the supposed wave c. Thus, now I still recommend selling the pound with targets located near the calculated levels of 1.2554 and 1.2360, which corresponds to 200.0% and 261.8% Fibonacci and with a restrictive order over the maximum of wave 2.
The material has been provided by InstaForex Company - www.instaforex.com